What to do with my private pension

Discussion in 'Finance & Pensions' started by Ryan79, Dec 23, 2011.

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  1. Hello,
    I'm 32 and joined the mob 7 months ago.
    Just after some advice on what to do with my private pension. I paid into it for several years but I don't know whether to just keep it ticking over or pay as much as I can into it?
    I will get proper advice, just after opinions or experiences
  2. I left a while ago so cannot offer much advice, but if you can I'd suggest you keep it going. You cannot guarantee a full 22 yrs service or that the Govt will not change the Military pension system. I know you can only pay so much into a pension pot but get good financial advice first as you may lose a lot of cash not only now but later on in life
  3. Keep it. The way things are going it makes nothing but good sense.
  4. As an ex financial Consultant for a high street bank, (out of the profession for a while now).

    It is illegal to have a company pension, (service for example,) AND a private pension running concurrently. It's to do with the tax evasion. You could convert your private pension into a AVC, (Additional Voluntary Contribution,) this would give you increased monthly income at pension age but no lump sum.

    You really and I mean really need to speak to your banks financial consultant and get the current SP, I say banks as they provide a free service to their customers whereas a private consultant will enjoy the commission from your conversation.
  5. wave_dodger

    wave_dodger War Hero Book Reviewer

    To echo waspish you can't have the two forms of pension and you can transfer in your pension fund and/or buy avcs, BUT do it quickly, ie within weeks of joining as there is some odd rule about timings. I was stuffed as the UPO gave me duff info and within weeks it was too late. If I recall there is a limit to what you can add in too.
  6. As I said I'm no longer licensed to give advice so as I said previously, get pukka info from the pro's.

    I don't know about the time limits. I believe there is no upper limit to a lump sum AVC. Up to 15% of salary can be placed in a pension made up of pension income from salary and personal contribution.

    Hope that partly clears up the problem.

    One last word of warning. If you do nothing you will stand to lose all pension income. Chap at my work ignored me and he suffered the wrath of the courts. He had in there view made a financial profit, via tax concessions, for years and when both company and private pensions were discovered he lost the lot.
  7. Actually what you can guarantee is that in your 22 they will change it.
  8. The 2004 Finance Act introduced changes from 6 April 2006. From that date onwards the complicated eight pension tax regimes were replaced by two limits on tax privileged pension arrangements. These limits are the Life Time Allowance and the Annual Allowance. You can now have a private and occupation pension savings, providing you do not breach these allowances. For example, it used to be the case that you could only have a Stakeholder Pension along side an occupational pension if you were earning less than £30K - that limit no longer applies.

    If you are thinking of transferring you other pension savings into AFPS 05, you need to do so within one year of being eligible to be a member of that scheme.

    The Forces Pension Society does not give financial advice but I have a contact from St James' Place who speaks on the Financial Aspects of Resettlement courses. If you would like his contact details, please send me a PM.
  9. Thank you very much for all the replies to my question. Transferring my private pension savings into AFPS 05 sounds like the way to go but i will get some advice before i do anything. Cheers

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